Virginia

The Bottom Line

Mixed Tax Picture

The Old Dominion has middle-of-the-road income taxes and relatively low property taxes. Note that while the sales tax is low, groceries are taxed.

Sales Tax

5.3% state levy, including 1% that is allocated to local governments. Northern Virginia and the Hampton Roads area have an additonal 0.7% sales tax to pay for transportation improvements, giving the state an average combined rate of 5.65%, according to the Tax Foundation. Groceries are taxed at 2.5% statewide.

Property Taxes

Vehicle Taxes

A 4.15% "motor vehicle tax" applies to purchases; this is lower than the prevailing sales tax.

Vehicles are also subject to an annual vehicle personal property tax. Localities assess vehicles and administer the tax. For example, the current tax rate for vehicles in Fairfax County is $4.57 for each $100 of assessed value. Depending on the county, city or town where the vehicle is assessed, people 65 and older and disabled individuals who meet income requirements may be eligible for tax relief. There’s also tax relief available for owners of cars assessed at lower values, which is determined by the locality."

Beer: $0.26 per gallonWine: $1.51 per gallonLiquor: $19.93 per gallon. Virginia directly controls the distribution and sale of alcohol. Liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation

Travel Taxes

Hotel: A variety of lodging taxes are in place, including a 2% transient tax statewide. In 2014 the state added an additional 0.3% sales tax for lodging. Northern Virginia adds another 2% for transportation funding. Localities add their own taxes, ranging from 2% to 5%.